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Question
A shopkeeper allows a discount of 12.5% on the marked price and makes a profit of 20%. If the cost price is Rs.4200, what should be the marked price?
Solution
Given, C.P. = Rs.4200
Profit = 20%
`"S.P."/"C.P." = 1 + "gain"/(100)`
⇒ `"S.P."/(4200) = 1 + (20)/(100)`
⇒ S.P. = `4200 xx (120)/(100) `
= Rs.5040
Now, S.P. = Rs.5040
Discount = 12.5%
`"S.P."/"M.P." = 1 - "discount"/(100)`
⇒ `(5040)/"M.P." = 1 - (12.5)/(100)`
⇒ M.P. = `(100)/(87.5)` x Rs.5040
= Rs.5760.
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